CHAPTER 1

OVERVIEW OF
MARKETING
Fundamentals of Marketing (MKT243)

The slides were created by a team of lecturers from UiTM Malacca Branch who developed the MKT243 book.
 Learning Outcomes
By the end of this topic, you should be able to:
1. Define Marketing
2. Describe elements of Marketing Mix (4Ps)
3. Discuss the four Marketing Management Philosophy
4. Describe External Marketing Environment
Chapter Map
 Defining Marketing
Marketing is the activity, set of institutions, and processes for creating,
communicating, delivering, and exchanging offerings that have value for customers,
clients, partners, and society at large (American Marketing Association, 2013).
Other meaning of Marketing
According to Kotler et al. (2015), "Marketing is human activity directed at satisfying
needs and wants through exchange process."
According to Baker and Hart (2016), "Marketing is all the actions and activities an
organization undertakes to promote their goods and services and achieve a maximum
sale.”
 Elements of Marketing Mix (4Ps)

Product Place Price Promotion

A set of
An item offered for interdependent What a buyer must Specific blend of
sale. It can be a organizations that give up to obtain a advertising, public
good, service, facilitate the product, referring to relations, personal
person, place, or transfer of the amount of selling, and sales
idea. ownership as money charged for promotion tools that
products move from a product or firm uses to
producers to service. communicate
consumers or customer value.
business users.
 Marketing Management
Philosophies
1 Production Orientation The one problem with this type of
philosophy is that it does not take
A philosophy that focuses on the into consideration whether their
internal capabilities of the firm product or service actually meets
rather than on the desires and the needs of the consumer and
needs of the marketplace. market.
A production orientation means
that management assesses its
resources and asks these
questions: ‘what can we do
best?’.
 Marketing Management
Philosophies
2 Sales Orientation Companies following a sales
orientation prioritize the question,
The belief that aggressive sales 'How can we sell more
techniques lead to increased aggressively?'
purchases of goods and services,
consequently resulting in higher Insurance companies serve as a
profits. prime example of businesses
employing a sales orientation.
This approach assumes that
consumers will not buy enough of
the product unless the
organization employs forceful
promotion and selling efforts.
 Marketing Management
Philosophies
3 Market Orientation
The marketing concept is the idea
that the social and economic
justification for an organization’s
existence is the satisfaction of
customer wants and needs while
meeting organizational objectives.
Producers concentrate on
understanding 'what do customers
want and need.'
The marketing concept includes the
following:
1. Focusing on customer wants and
needs.
2. Integrating all the organization’s
activities.
3. Achieving long term goals for the
organization by satisfying customer
wants and needs.
 Marketing Management
Philosophies
4 Societal Marketing
Orientation
States that an organization exists
not only to satisfy customer wants
and needs and to meets
organizational objectives, but also
to preserve individuals’ and
society’s long-term best interest.
Producers concentrate on the
concept that ‘what do customers
want and need, and how can we
benefit society’.
Concerns such as climate change,
fuel shortages, pollution and raised
health concerns have caused for
companies to adopt measures that
conserve resources and cause less
damage to the environment.
In line with these issues, companies
start producing products using
reusable materials in order to
preserve the environment.
 Defining
External Marketing Environment

The external marketing environment refers to factors beyond the

control of the business. The exhibit above shows the controllable and
uncontrollable variables that affect the target market.
 External Marketing Environment
1 Social Factors
Social factors refer to the trends within society that can impact
consumer behavior and preferences. For example, the mature
population of Malaysia is increasingly health-conscious, prioritizing
fitness and well-being. This trend has led to a growth in the number
of beauty clinics and health centers.
Social factors are perhaps the most difficult external variable for
marketing managers to forecast, influence, or integrate into
marketing plan.
 External Marketing Environment
2 Demographic Factors

The demographic environment is a term used by marketers to

describe the characteristics of a population. It encompasses factors
such as age, race, and gender.
For example, a company aiming to launch a new line of baby clothes
would conduct research on the size and age distribution of the
population to assess the market potential for their product.
 External Marketing Environment
3 Economic Factors
Economic encompasses all the variables that impact how the consumer spends
their money and the power of that purchase. The three economic areas of
greatest concern to most marketers are consumers’ incomes, inflation and
recession
 External Marketing Environment
4 Technologial Factors
Technological factors encompass production techniques, information and
communication resources, and e-commerce technologies. These technologies
influence how an organization operates, sells its products, and interacts with
customers. The growth of a firm's wealth depend largely on the speed and
effectiveness of technological advancements that increase productivity.
For instance, new machines capable of reducing production costs can become
one of a firm’s most valuable assets. Utilizing the latest technology and
machinery often leads to more innovative organizations.
The exhibit below illustrates the world's largest technology companies.
 External Marketing Environment
5 Political-Legal Factors

The political-legal environment, including factors like government policies,

shapes how firms operate. Tax changes are a key example. Governments may
increase taxes for some companies while decreasing them for others, directly
impacting businesses' competitiveness and profits.
For example, to address income inequality, the government increases taxes on
large corporations and reduces them for small businesses. This decision affects
corporate competitiveness and supports local entrepreneurship.
External Marketing Environment
6 Competitive Factors

The competitive environment is where different

businesses compete within a defined marketplace.
There are mainly two types of competition.
• Direct competitors
• Indirect competitors
 Direct Competitors Indirect Competitors

Businesses that offer Businesses that

the same or similar offer different
products or services. products or
services, but they
For example, can still compete.
Ryanair is a direct
competitor with For example, firms
Easyjet, because producing cameras
they offer the same and smartphones.
service which is low
fare flights.
That’s all for
today
Any Questions?